Selling properties in the Alps since 1999

Category Archives: new property

Buying an off-plan apartment or chalet can have many benefits. When I started out in this job (15 years ago) I thought that buying into a development should cost less than buying something you could see. I was focusing on the risk and the waiting time.

I was wrong though. Buying a brand new property generally comes at a slight premium. Compare it to buying a new car. You can specify everything to be just how you want it from the outset, you might have to wait a few months for delivery but then you’ll be the first to use it.

Appt. clos du Savoy in St Gervais, see link below for more info.

I’ve listed the advantages here:

Payment is in stages, staggered over the build.

There are lower notaries fees and stamp duty (2.5% vs about 8% on anything but off-plan properties)

The latest buildings are much cheaper to run thanks to the eco-legislation in place in France.

You can normally adjust the specifications to your taste.

There are often options to buy extra parking and garages.

The VEFA legislation in France makes this one of the safest property purchases you can make.

Against

There will be a wait of at least a year, sometimes 2.

You can’t judge the quality of the finished product. Always ask to see a development built by the same developer to reassure yourself.

Appt. La Bastide on the side of Lac Annecy, more info on the link below

VEFA (Vente en l’état futur d’achèvement)

This is the contract that lays out what the development will provide, the specifications, dimensions, tolerances of the build, delivery dates, when you will pay, under what circumstances you can withdraw. It is very detailed (and will be in French), there is a clear explanation of the document here.

Getting a mortgage for an off-plan property is fine too. In fact in provides yet another safeguard. The mortgage company will want to see that the developer is doing everything by the book. They’ll ask the developer to show that every guarantee and insurance is provided for. The most important is the GFA (Garantie Financière d’Achevement). this is an insurance policy that guarantees the project is completed if the developer finds themselves in financial difficulty and unable to complete the work. Some of the smaller developers might try and avoid some of these. Especially if they are not a legal requirement. So if the mortgage company knocks back an application because they are not happy with the development then you should ask questions as to why.

Finally, assume that the delivery day will be missed. Probably because of “weather” issues. They’ll be a clause that protects the developer in the VEFA that allows for inclement weather. So don’t make any financial commitments based on the delivery date! Like an assumption that you’ll have a rental stream or a holiday booked to stay in the apartment. If you do get you “keys in hand” by the date you expect then it’s time for a celebration!

More details about the Clos du Savoy apartment development in St Gervais here.

La Comtesse development in St Gervais is, in our opinion a pretty good option for property hunters looking for something in and among it all. Set behind the church, right in the centre, owners will have a quiet location surrounded by trees and views of Mont Joly, yet with all amenities on their doorstep. In fact next door is the Sérac, a gastro restaurant that has recently obtained its first Michelin star, and very proud of them we are.

Within a 100 paces of La Comtesse there’s a number of banks for all your international transfers, a few locals’ bars – La Grange where you’ll meet the lifties and ski instructors or the more recent Brasserie that offer a pool table and covers sporting events; the Serac’s gourmet bistort and deli; the Mairie for all your French admin or marrying needs and the little police station where the local ‘Policiers’, who get all excited if a car breaks down in the centre of the village and who double up for lollypop duty for the school kids, reside. Ahhh, sweet rural living.

There’s also the choice of 3 supermarkets, the office de tourisme, the potters shop and the historic Haute Tour – which are fortified buildings dating back to the 13th century that can be visited and where cultural and artistic events take place. If you buy in La Comtesse, you can literally holiday in your slippers!

La Comtesse is nearing completion and the other day, they had planted the trees which will give privacy and help landscape the newly implanted building.

Only 6 apartments were ever available and there are currently only 4 left. We have just taken pictures of the insides of the apartments, which until now didn’t have bathrooms and kitchens. Yes, they still need their final clean, so you’ll spot dust on mirrors and floors and the odd ladder in the images, but have a look at the new mountain interiors with a modern twist.

For those wanting a large spacious apartment, then La Comtesse 5 is your best option

Les Rivières des Montagnes is a new development right next to the Grand Massif Express in Samoens. It’s a prime location that is hard to beat. 250m from the lift and a 5 minute walk from the centre of Samoens . In the summer it’s a great spot too, it’s next to the riverside path and only a short bike ride from the park and municipal swimming pool too.

If you look at the map below you’ll clearly see the ski lift, swimming pool and edge of Samoens village centre. I’ve marked the plot in red too.

There are 17 apartments and a ski shop in the building. Currently there are 13 apartments left to sell (as of February 2014)

We have one studio for sale 3 x 1 bedroom apartments, 3 x 2 bedroom apartments, 7 larger 2 bedroom apartments, one 3 bedroom and one 4 bedroom. I have listed them below.

The new apartments are due to be completed by early summer 2015. That might sound like some way in the future but it’s not. Construction has just started. There will have to be a break for winter. It will restart again in the Spring of 2014, then the major works will have to be completed by the end of 2014, when you think that there are 17 apartments and a ski shop to build that’s a big job! The building will need to be watertight by the Christmas 2014 so the internal finishing can take place over the following winter for completion at the end of Spring 2015.

The apartment itself is set up for the rental market and has a solid existing client base, as well as a website that can be transferred to the new owner. With about €14,500 taken in bookings already for the season 2013/14 (which would be passed directly to the new owner), this property comes with a guaranteed return-on-investment of 5% GROSS ROI for the coming season.. That’s 10 times better than the Bank of England’s rate!

Chalet Frollie: €695,000 This 5 bedroom, 4 bathroom chalet is perfect for the rental market. Low maintenance, it means that management from afar is very low-hassle. Less than 5 minutes walk from the nearest ski-lift and the village centre ensures all the action is nearby, but the chalet itself is in a nice quiet neighbourhood. Perfect for family rentals! With an annual turnover close to €35,000, a solid client base and an established website, this chalet also offers a fabulous investment opportunity.

If you’d like to know what the annual costs are associated with these rentals please let me know via the contact form on our website. This will make the NET ROI easy to work out. It’ll beat the current rate of inflation which is 2.4% and that leaves capital appreciation which is doing well at the moment.

With the massive growth seen lately in road biking and triathlon holidays boosting summer rentals, and the well established family and mountain biking holidays the investment potential of a property in the Alps can only continue to grow!